The market risk premium is 14.12. A market risk premium in finance and economic is used to measure how much the level of risk.
A risk premium means a measure of excess return that is used by an individual to compensate being subjected to an improved degree of risk. A risk premium is the common definition being the expected risky return less the risk-free return.
To find the amount of risk premium, we can calculate it use beta of the stock formula:
Beta of the stock = (expected return - risk-free rate) ÷ risk premium
Because we need the amount of risk premium, then it will be:
Risk premium = Beta of the stock/(expected return - risk-free rate)
Risk premium = 1.75/(15.7% - 3.3 percent)
Risk premium = 1.75/(0.157 - 0.033)
Risk premium = 1.75/0.124
Risk premium = 14.12
Thus, the market risk premium is 14.12.
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Sharon is in the "purchase decision and purchase act" <span>stage of consumer decision process.
</span><span>The buying decision process is the basic leadership process utilized by buyers with respect to advertise exchanges previously, during, and after the buy of a good or administration. It can be viewed as a specific type of a cost– advantage examination within the sight of various options.The five stages of this process includes:
Problem Identification
Information Search
Evaluation of Alternatives
Purchase Decision
Post-purchase Decisions</span>
Answer:
invoice price (dirty price) = $1,004.13
Explanation:
semi-annual coupon = $1,000 x 7% x 1/2 = $35
clean price = $1,001.25
accrued interest = (Jan. 30 - Jan. 15) x $35 x 1/182 = $2.88
invoice price (dirty price) = clean price + accrued interest = $1,001.25 + $2.88 = $1,004.13
the dirty price or invoice price of a bond includes any accrued interest that the bond may have earned in the period between the last coupon payment and the transaction date.
